US Trade Representative Jamieson Greer and Indonesia Minister for Economic Affairs Airlangga Hartarto. Image: US Trade Representative

US meat and grain export bodies have applauded US president Donald Trump after he announced a new zero-taff trade deal for US products to Indonesia this week.

Indonesia has agreed to eliminate tariff barriers, on a preferential basis, on over 99 percent of US products exported to Indonesia across all sectors, including for all agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals.

At the same time, Indonesia will pay the United States a reciprocal tariff rate of 19 percent on Indonesian exports to the US, which is down from the 32pc the Trump Administration had threatened to impose on Indonesia.

Indonesia has also agreed to “address and prevent barriers to US agricultural products in the Indonesian market” by

• exempting US food and agricultural products from all of Indonesia’s import licensing regimes including its commodity balance policy;
• ensuring transparency and fairness with respect to geographical indications (GIs) including meats and cheeses;
• providing permanent Fresh Food of Plant Origin (FFPO) designation for all applicable U.S. plant products; and recognizing U.S. regulatory oversight, including listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities.

The US total goods trade deficit with Indonesia was $17.9 billion in 2024.

Before the deal, Indonesia’s simple average applied tariff was 8% while the US average applied tariff was 3.3%.

“President Trump has delivered a forward-looking and tough trade deal that will benefit American workers, exporters, farmers, and digital innovators—this deal is what winning looks and will feel like for all Americans,” a White House statement said.

US Industry groups have applauded the Trump administration, including:

The Meat Institute: “The Meat Institute’s members celebrate @realdonaldtrump and @USTradeRep’s work on a deal with Indonesia opening up this important market for meat & poultry. We look forward to seeing the details of the deal & to continued efforts to remove remaining barriers to trade in other SE Asian markets.”

U.S. Meat Export Federation President and CEO Dan Halstrom: “USMEF thanks USTR for its tireless efforts to negotiate a meaningful agreement with Indonesia, tackling many challenging issues. Indonesia is a market with incredible potential, in which the opportunity for U.S. beef is estimated at $250 million annually. But today, exports are minimal due to numerous trade barriers. We are encouraged to see that the highlights detailed in the U.S.-Indonesia joint statement include resolving key issues such as import licensing, the commodity balance policy, and Indonesia’s onerous plant-by-plant approval process. For both U.S. beef and U.S. pork, these longstanding restrictions have limited exports to Indonesia. Indonesian importers and consumers are demanding U.S. red meat and we look forward to the swift conclusion of these negotiations and expanded export opportunities.”

U.S. Grains Council President and CEO Ryan LeGrand: “The U.S. Grains Council commends the Trump Administration on its historic trade deal with Indonesia, that will enhance trade for both countries and places a zero tariff on the products the Council represents. In the 2023-24 marketing year, Indonesia was the fourth largest importer for U.S. distillers dried grains with solubles at 1,024,000 metric tons. That translates into a nearly $299 million market, and we hope the deal announced today will not only help see those numbers increase but open doors wider to the full range of products we have to offer.”

U.S. Wheat Associates President and CEO Mike Spier: “We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry. We thank the Trump Administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their continued work on behalf of American wheat farmers.”